Technology One has credited strong demand for its products and services, along with substantial R&D investment, for its 30 per cent jump in annual net profit to $13.11 million.
Executive chairman, Adrian Di Marco, said the company had gained 70 new clients as the result of demand over the past financial year. Hot services included implementation, consulting, client services and software development. Strong take-up of its flagship solution, Finance One had also contributed to the positive earnings results.
While market conditions were slowly starting to improve in the enterprise applications realm, Di Marco said the company separated from the pack by offering customers a clear product strategy and roadmap in the midst of merger/acquisition angst.
“There’s a lot of fear, uncertainty and doubt out there as well because of the acquisitions of Peoplesoft and J.D. Edwards and I think there are a lot of market concerns because of that,” he said. “I think with Great Plains, bought by Microsoft, people are also starting to see the direction of those business products is no longer as clear."
For Tech One, select product rollouts contributed to the financial upswing, Di Marco said. They included the release of Retail One, Finance One, People One R10.3 and R11.0, Student One R2.4, R2.5 and R2.6, and Proclaim One R9.3.
Other company milestones included organisational changes into four operating units and research into new markets, he said.
On the R&D front, the company earmarked $9.55 million into the investment program during the 2003/2004 financial year.
“This is a significant investment representing 19 per cent of our revenue,” Di Marco said. “We have continued our conservative approach of fully expensing all R&D as incurred, rather than take the more aggressive approach more commonly adopted in Australia of capitalising R&D.”
A new product under development is Work One, a project and works management solution.
“This is aimed at companies that are asset-intensive industries or that are into very sophisticated project management and project costing,” he said.
The other new area of focus includes the professional services automation market.
But perhaps the bigger focus, Di Marco said, was the next generation launch of all product lines.
Dubbed the Connected Intelligence (CI) series, the first product rollout, Finance One CI, was slated for general distribution in early 2005.
Di Marco said Web services-enabled functionality would be a key feature.
“The CI series is the redevelopment of all of the previous applications for the next 10 years based on Microsoft’s .Net technology,” he said. “It is aimed at companies that are running devolved organisational structures that need to connect clients, suppliers, staff, manager and disparate systems.”